This study examined the impact of employee satisfaction on the competitive advantage of selected virtual organisations in Lagos State, Nigeria. Specifically, it assessed the relationship between individual virtual competencies, motivation, organisational identity, autonomy, the nature of the work and the competitive advantage of virtual organisations in Lagos State, Nigeria. The survey research design was adopted for this study. The population of the study covered all staff in selected virtual organisations in Lagos State, Nigeria. A total of 400 copies of questionnaire were distributed and retrieved. Stratified random sampling procedure was used in administering the copies of questionnaire to selected virtual organisations in Lagos State, Nigeria. The data collected through questionnaire administration was analysed using descriptive statistics such as frequency distribution, mean and standard deviation. Multiple regression analysis was used to test the null hypotheses and estimate the research model using the Ordinary Least Squares (OLS) technique through the use of the Statistical Package for Social Sciences (SPSS) Version 24. The study found out that there is a significant positive relationship between individual virtual competencies, motivation, organisational identity, the nature of the work and competitive advantage while revealing that there is a positive and non-significant relationship between autonomy and the competitive advantage of virtual organisations in Lagos State, Nigeria. The study recommended that virtual organisations employ individuals that have the required skills and competencies needed to perform the various organisational tasks, motivate their employees intrinsically and extrinsically, possess a strong brand image, allow employees experience freedom to do their tasks and duties at their own pace and take cognisance of employees that work in dispersed locations with peculiar difficulties in those varied locations so that they will contribute more to the competitive advantage of the virtual organisation.